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25 Best Cities where You can Retire on $4000 a Month
Ghazal Ahmed
11 min read

This article takes a look at the 25 best cities where you can retire on $4000 a month. If you wish to skip our detailed analysis on retirement struggles, behaviors, and costs, you may go to 5 Best Cities Where You Can Retire on $4000 A Month.

Retirement Realities: Struggles, Behaviors, and Costs

Caught in a financial vortex, many individuals find it hard to save for their retirement years. A Bank of America Corporation (NYSE:BAC) confirms this notion, stating that more and more Americans have been tapping into their 401(k) accounts because of troubling times. The number of individuals taking hardship withdrawals in the first three months of 2023 has witnessed a surge to 15,950, rising by 36% from the second quarter of 2022. Fidelity Investments notes that the primary reason these people are tapping into their savings is to cover housing and medical costs.

At the same time, Bank of America Corporation (NYSE:BAC) has also reported that 401(k) balances have increased by 9.6% to $7,250 in 2023. These statistics are rather conflicting, implying that individuals understand the need to save, yet struggle with it.

"The data from our report tells two stories — one of balance growth, optimism from younger employees, and maintaining contributions, contrasted with a trend of increased plan withdrawals. This year, more employees are understandably prioritizing short-term expenses over long-term saving."

Fortunately, inflation appears to be moderating, which means individuals may not need to take hardship withdrawals as much as they needed to this year. Moreover, the Internal Revenue Service (IRS) has also announced new 2024 limits for employer-sponsored 401(k) accounts. According to the IRS, individuals can now save up to $23,000, up from $22,500, in their retirement accounts.

For individuals who have been having trouble saving for retirement, a new study by The Goldman Sachs Group, Inc. (NYSE:GS) suggests that your behavioral traits might be to blame. According to The Goldman Sachs Group, Inc. (NYSE:GS), a leading global investment bank, only 10% of workers have the “optimal” characteristics that help them save up for retirement. Their previous study has highlighted inflation and competing life priorities to be responsible for reducing retirement savings by 37%, but the new one suggests behavioral characteristics may also be playing a part.

These four traits include over-optimism, future orientation, financial literacy, and risk-vs-reward-based attitude. The study states that an overly optimistic individual is comfortable enough to take the steps needed to save and invest for their future. Those who are oriented towards the future are likely to spend smartly and save for tomorrow. Meanwhile, someone who is financially literate knows their way around investing and financial planning, helping them make sound financial decisions. Lastly, a risk vs reward mentality helps focus on either aggressively achieving goals or focusing on security and protection.

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